Goldman Prices Intrepid Potash IPO at $32
Well, it is in gods hands now. Goldman pulled a bit of a sneak attack...this deal was not supposed to price until later this week.
Intrepid Potash Inc., the largest U.S. producer of the potassium compound used in fertilizer, priced an initial public offering of 30 million shares at $32 apiece, according to a person familiar with the situation.
The company will use the $960 million to fund its operations, pay for an acquisition and retire debt, according to a government filing. Goldman Sachs Group Inc., Merrill Lynch & Co. and Morgan Stanley led the offering, which was increased last week from 24 million shares.
Intrepid Potash, based in Denver, estimated in earlier filings that the shares would be sold for as little as $24 apiece and as much as $29. There are an additional 4.5 million shares to cover any over-allotments.
``This does look like it’s got a sparkling start,’’ said David Menlow, president of Millburn, New Jersey-based IPOFinancial.com. ``These stocks have really shown the demand for the fertilizer market. We have capacity constraints in the world and demand that just seems to be overflowing.’’ Bloomberg
Where will the stock open for trading? And will it close above its opening print? Those are the questions I have at the moment; seeing the pot list would be nice too. Who got the allocations?
You did not have to be intrepid to put in a 10% order on this deal; potash translates to “free money” and this IPO should fly, even at this price.
TIcker symbol: IPI Check out a preview of the deal.
Intrepid Potash Prices 30 Mln Initial Shares at $32
Bloomberg
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